A U.S. affiliate of Grupo BTG Pactual SA, the Brazilian bank whose top executive was arrested last month as part of a sweeping corruption scandal, was dropped as subadviser to a pair of alternative mutual funds run by Blackstone Group LP.
BTG Pactual Asset Management US LLC “will no longer serve as a subadviser” to the Blackstone Alternative Multi-Manager and Multi-Strategy Funds, according to a notice Blackstone filed Monday with the U.S. Securities and Exchange Commission. The change becomes effective Dec. 15.
Blackstone, the world’s largest manager of alternative investments, parcels out the assets of the two mutual funds to third-party managers who invest the money in a range of strategies. BTG Pactual’s U.S. unit provided strategies based on global macroeconomic themes, according to regulatory filings. Its assets will be reallocated to the funds’ other subadvisers.
The BTG unit had more than $57 billion in assets under management at the end of last year, the most recent data available from the SEC’s website.